Students to have to pay council tax from 2013?

V_Chic_Chick

Hi,

As some of you will be aware, council tax benefit is being removed from 2013, and replaced by a system of council tax support, and local councils will be responsible for choosing who receives support, with only pensioners protected from funding cuts.

I've now found this on my local council's website

A person who is a student is only eligible for support in the circumstances specified in the Council Tax Benefit Regulations 2006 as at 31 March 2013.

I hope the link works - it's to a PDF
http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&ved=0CD4QFjAB&url=http%3A%2F%2Fwww.manchester.gov.uk%2Fdownload%2F18991%2Fdetails_of_the_proposed_council_tax_support_scheme&ei=48LXUJ3bNKmw0QWu9IDQCw&usg=AFQjCNHUXJ2iETkCzAVQPjUKBqcQGtaxlQ&sig2=9b640Tax5IunYQGIQv-VwQ&bvm=bv.1355534169,d.d2k

Now, it appears that that means that students with savings of less than £16,000 will be eligible for council tax support. However, after a family member came over somewhat morbid and decided to deposit a significant amount of their money in my bank account. It's not my money; I can't spend it, but there's no real paper trail to prove it still belongs to them. When combined with my own savings (and particularly when the student loan comes in, which obviously boosts my bank balance somewhat) I am pushed over the £16,000 limit.

According to this, giving some of the money back would be judged to be deprivation of capital.

Money, property or other assets held in the name of the applicant or a member of the family shall be treated as belonging to that person unless it is shown clearly, and to the satisfaction of the Council, by documentation relating to the acquisition or initial investment of the asset, that it is held in trust, and only used, for the benefit of a person or persons none of whom is a member of the family.

Where the applicant or a member of the family has disposed of any income or capital asset other than as normal reasonable household expenditure or of necessity, the Council may treat that person as still possessing that income or capital.

In addition, I live with an EU citizen (also a full time student), and I am tied into a tenancy with them until the end of June 2013. According to this, they may not be eligible for council tax support?

A person from abroad, as defined in the Council Tax Benefit Regulations 2006 as at 31 March 2013, is not eligible for Council Tax Support

If I have this correct (and I very much hope that I don't) it would appear that I, and my fellow housemates, will be liable for a bill of £1326.99 per year - or as we will only be there for the three months of April - June, it will be £331.74. There is no apparent rise in student finance to fund this. More worryingly, I will be living in a smaller house next year, and so I would be liable for a much higher bill, with fewer people to split it between.

Sorry for the long post. If someone could tell me if
a) what I have written above is correct
b) if returning some capital to said family member would make me eligible for council tax support
c) whether or not (b) would count as deprivation of capital
d) if an EU student counts as being from abroad for council tax support purposes
...then I would be very grateful

Thanks

HappyMJ

a) close enough....
b) If the money isn't yours as you say then give it back.
c) As the money is not yours it can not be seen as deprivation of capital...proving it...well that's up to you. Most of the time it's just a verbal agreement and there isn't anything in writing. You may need to make a statutory declaration regarding the ownership of the money if they query it.
d) A person from abroad is defined in the regulations. http://www.legislation.gov.uk/uksi/2006/215/part/1/made You'll have to read it but basically a person from abroad is a person who is not habitually resident in the UK.

CIS

As some of you will be aware, council tax benefit is being removed from 2013, and replaced by a system of council tax support, and local councils will be responsible for choosing who receives support, with only pensioners protected from funding cuts.

This would only affect those students who were eligible for council tax benefit and who fall outside the council tax definition of a full time student who will continue to be disregarded (and the property being exempt if all occupiers are full time students)

mountainofdebt

V_Chic_Chick wrote: »

Now, it appears that that means that students with savings of less than £16,000 will be eligible for council tax support. However, after a family member came over somewhat morbid and decided to deposit a significant amount of their money in my bank account. It's not my money; I can't spend it, but there's no real paper trail to prove it still belongs to them.

Sorry if I come across all unsympathic but either the money is yours or it isn't.

As its in your account, why can't you spend it? Or have they given it to you so that they can claim benefits in their own right?

debtfreeby2013

CIS wrote: »

This would only affect those students who were eligible for council tax benefit and who fall outside the council tax definition of a full time student who will continue to be disregarded (and the property being exempt if all occupiers are full time students)

This.

Full time students are not eligible to pay council tax - it is not council tax benefit (which is what is being cut). The regulation refers as far as I can see, refers to students who are not exempt and receive council tax benefit to cover part or all of the council tax as they are not exempt.

Even if, however, you are right, the £13,226 a year would not have to be paid over 3 months if you are only there from April-June you will only pay for April-June (just over £110 a month).

CIS

Full time students are not eligible to pay council tax - it is not council tax benefit (which is what is being cut)

Which is why I said

This would only affect those students who were eligible for council tax benefit and who fall outside the council tax definition of a full time student who will continue to be disregarded (and the property being exempt if all occupiers are full time students)

The change in regulations only affects those students who not already disregarded or exempted via council tax legislation.

If I have this correct (and I very much hope that I don't) it would appear that I, and my fellow housemates, will be liable for a bill of £1326.99 per year - or as we will only be there for the three months of April - June, it will be £331.74.

If they are not a full time student for council tax purposes and already disregarded then they would be no longer eligible for council tax benefit and would fall between the 2 systems.

Even if, however, you are right, the £13,226 a year would not have to be paid over 3 months if you are only there from April-June you will only pay for April-June (just over £110 a month).

I am correct based on the proposed change that has been posted. The charge will , of course, be pro-rata.

V_Chic_Chick

mountainofdebt wrote: »

Sorry if I come across all unsympathic but either the money is yours or it isn't.

As its in your account, why can't you spend it? Or have they given it to you so that they can claim benefits in their own right?

They came over rather morbid following a diagnosis, and so before major surgery they deposited the money into my bank account. The idea was that if something happened then I (as their next of kin) would be able to use that money to pay for a funeral / solve any immediate problems that required the application of money before probate had gone through / pay for care in the event of major disablement. The operation has happened, but they are still rather morbid as people go. The reason that it is still in my bank account is that they don't need the money in the immediate term, and so there has been no immediate need to transfer the money back.

The money is not in my bank account so that they can claim benefits - they still have too much in savings in their own name to be eligible for any benefits whatsoever.

Thanks to everyone for your responses - you've put my mind at rest (although we'll probably still have our council's incompetent CT dept to deal with - we've already had several run ins with them because they failed to grasp that we are all full time students, even after we told them three times!)

surfsister

so have we established that full time students will still be exempt from council tax??

CIS

so have we established that full time students will still be exempt from council tax??

Council Tax Exemptions for full time students are not changing - the only changes are to part time students who are not exempt and need to claim council tax benefit (council tax support from April 13).

debtfreeby2013

CIS wrote: »

Which is why I said
The change in regulations only affects those students who not already disregarded or exempted via council tax legislation.


If they are not a full time student for council tax purposes and already disregarded then they would be no longer eligible for council tax benefit and would fall between the 2 systems.




I am correct based on the proposed change that has been posted. The charge will , of course, be pro-rata.

Sorry CIS, just wanted to clarify that when I quoted your text I was agreeing with it. Hence, why I started with 'this'. I apologise that was unclear though.